From: Doug Clelan (Clelan & Company) [dougc@clelan.com]
Sent: Monday, May 03, 2004 3:48 PM
To: rule-comments@sec.gov
Subject: 12(b) 1 fees (s7-09-04)
Thank you for the opportunity to comment on the discussion about the repeal or
restriction of 12(b)1 fees. I applaud the SEC for looking into abuses in the
mutual fund industry. However there is a tendency to over react to information
uncovered in any investigative process. The 12(b)1 fees paid to registered reps
for on going service are quite nominal and, in most cases, represent the only on
going compensation to the RR. Without 12(b)1 fees service to the consumer will
suffer and other revenue sources will have to be found. When this occurs the
consumer generally pays. The focus ought to be on providing better, more
understandable disclosure and the abuses that line the pockets of fund
executives at the consumer's expense.
--
Douglas R. Clelan
****************
Douglas R. Clelan, CLU, ChFC
Clelan and Company
…. Optimizing Your Success
210 Grandview Avenue, Suite #101……………...…Telephone (717) 761-4633
Camp Hill, PA 17011…………………………........…Facsimile (717) 761-1331
Securities offered through Walnut Street Securities, Inc. Member NASD, SIPC, 270
Walker Drive, State College, PA 16801 (814) 238-0544. Advisory Services through
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